SoftBank borrowed $10 billion from several banks using its OpenAI stake
SoftBank Group said on Thursday it has borrowed $10 billion from a syndicate of banks including Goldman Sachs, JPMorgan Chase, Apollo, Mizuho Securities, and Sumitomo Mitsui, using its stake in OpenAI as collateral. The move is intended to fund a larger investment in OpenAI, with SoftBank planning to invest an additional $10 billion in OpenAI by October, completing the final portion of a $30 billion investment plan announced earlier this year. This transaction is considered unusual because backers of large startups typically do not invest through debt, and using equity in a private, loss-making company as collateral carries inherent risks.
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